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METRO GROUP reorganises Logistics function

19 April 2012

METRO GROUP is consolidating its cross-divisional logistics activities under one management structure. This reorganisation is subject to approval by the pertinent boards. Starting from 1 July 2012, the new METRO LOGISTICS is to be responsible for handling logistics services for the sales divisions in Germany and also for the overarching international logistics activities.

With this organisational realignment the company plans to significantly simplify the processes and structures of the supply chain management and offer the sales divisions - especially Metro Cash & Carry and Real - improved logistics services. The new METRO LOGISTICS will comprise two operational units: while METRO LOGISTICS Germany will be in charge of warehouse and distribution logistics as well as procurement logistics in Germany and the neighbouring countries, METRO LOGISTICS International Supply will focus on international logistics activities. Dutch-born Jeroen Janssen Lok, who had so far served as Managing Director of MGL METRO GROUP Logistics (MGL), will also be the CEO of the new logistics entity.

"With the organisational restructuring of the cross-divisional logistics activities we will achieve enhanced operational processes and more efficient cost structures. This allows us to directly support the business of the sales divisions", explains Janssen Lok. "With METRO LOGISTICS, we are in addition also aligning ourselves more with strategic activities such as delivery and e-commerce that are heavily dependent on optimal supply chain management".

After the name change and transitions, the previous logistics units METRO GROUP Logistics,METRO GROUP Logistics Warehousing,METRO International Supply as well as the department Corporate Cross Border Logistics of METRO AG are to be brought together under the new management structure of METRO LOGISTICS. In addition, the logistics function of METRO GROUP Buying Hong Kong (MGB HK) will in future be integrated more into the workflows of METRO LOGISTICS International Supply.

In the framework of the new organisation, the administrative functions of MGL at the warehouse location in Sarstedt are to be moved to Düsseldorf until mid-2013. All employees working in administration are to be offered a job in Düsseldorf. The departments responsible for IT are to be transferred to the group company METRO SYSTEMS already by October 2012 and remain in the Hanover region. In addition, MGL plans to gradually close down operation of its warehouse in Sarstedt until the end of 2013, at the latest. A corresponding social plan has to be adopted for the 235 employees working at the warehouse. The assortments handled in Sarstedt are to be relocated to the warehouses in Bremen, Altlandsberg and Essen, which would result in a significantly better capacity utilisation at these locations and create an additional number of roughly 150 jobs there. A detailed analysis of the Sarstedt location has shown that an extension and modernisation is very difficult and that, consequently, it will not be possible to operate the warehouse economically in the medium term.

METRO GROUP is one of the largest and most international retailing companies. In 2011 the Group reached sales of around € 67 billion. The company has a headcount of more than 280,000 employees and operates around 2,200 stores in 33 countries. The Group's performance is based on the strength of its sales brands which operate independently in their respective market segment: Metro/Makro Cash & Carry - the international leader in self-service wholesale, Real hypermarkets, Media Markt and Saturn - European market leader in consumer electronics retailing, and Galeria Kaufhof department stores.